You think that you will be able to deposits ￡4000 at the end of each of the next three years in a bank account paying 8 percent interest. You currently have ￡7000 in the account? How much will you have in three years? In four years?

To solve this problem, we need to calculate the future value of the deposits and the current balance in the account after three and four years.Given information:- Deposits: at the end of each year for the next three years- Interest rate: 8% per annum- Current balance: Step 1: Calculate the future value of the deposits after three years.The formula for the future value of an ordinary annuity is:FV = P × [(1 + r)^n - 1] / rWhere:FV = Future valueP = Periodic payment (deposit)r = Interest rate per periodn = Number of periodsFV = 4000 × [1.2597 - 1] / 0.08FV = 12,925Step 2: Calculate the future value of the current balance after three years.FV = PV × (1 + r)^nWhere:FV = Future valuePV = Present value (current balance)r = Interest rate per periodn = Number of periodsFV = 7000 × 1.2597FV = 12,925 + 21,739.90Step 4: Calculate the future value of the deposits after four years.FV = 4000 × [1.3605 - 1] / 0.08FV = 18,025Step 5: Calculate the future value of the current balance after four years.FV = 7000 × 1.3605FV = 18,025 + 27,567.50Therefore, the amount in the account after three years will be 27,567.50.